Under the given assumptions, the sum of the call and put prices is $2.16+$4.94=$7.10. Suppose, ceteris paribus, that the stock will be worth either $45 or $15 in one year.* What is the sum of the call and put options then?

L M N 0 Q R S T U v w X Y Stock price B D E F G H 1 J 1 TWO-DATE BINOMIAL OPTION PRICING 2 Up 1.40 #NAME? 3 Down 0.80 #NAME? 4 5 Initial stock price 25 6 Interest rate 1.08 7 Exercise price 30 8 9 9 Bond price 10 35 #NAME? 1.08 #NAME? 11 25 1 12 20 #NAME? ? 1.08 #NAME? 13 14 Call option Put option 15 5 #NAME? 0 #NAME? 16 ??? ??? 17 0 0 #NAME? 10 #NAME? 18 19 20 A 0.3333 #NAME? 21 B -6.1728 #NAME? 22 23 Call price 2.1605